A preventive measure to safeguard your business.
If you run a business or plan to start one, there could be instances where you share confidential information with others. Some of the information shared could be valuable and should be protected. In order to receive assurance that the data or information shared will not be misused, it’s advised to have a non-disclosure agreement in place before the confidential information is shared.
A non-disclosure agreement or a confidentiality agreement is a legal contract made between parties to ensure that confidential material, information or knowledge; is kept between them. Parties are prohibited from disclosing confidential information to other people and the agreement lays out the restrictions and consequences of a breach.
Types of Non-Disclosure Agreements:
A one-way non-disclosure agreement is where only one party is disclosing the confidential information. A mutual non-disclosure agreement is where both parties are disclosing confidential information.
When should you consider a Non-Disclosure Agreement?
- During your recruitment process.
- When starting a new project with another company.
- Before merger and acquisition discussions.
What does a Non-Disclosure Agreement include?
Each agreement will differ depending upon the business and nature of the
information. However, there are some important elements which should be included:
- Parties involved.
- Defining what information is confidential.
- The binding period.
- Obligations of the parties.
- What the information can and cannot be used for.
- Damages where there is a breach.
Aspire Lawyers have helped many start-ups and other businesses to be better prepared for situations where their confidential information may be at risk. Our Commercial Law team can assist you with drafting and reviewing non-disclosure agreements as you require. Consider a quick chat with us to know more. To get further advice call our Melbourne commercial law team on 03 9743 1333, our Perth commercial law team on 08 6183 3753 or email .